(7) Classification of businesses

Question 1

What are the three sectors in business?

Answer 1

• Primary sector
• Secondary sector
• Tertiary sector

Question 2

What happens in the primary sector?

Answer 2

This sector is involved with extracting raw materials from Earth. Example:

• Agriculture
• Fishing
• Forestry
• Mining and quarrying

Question 3

What happens in the primary sector?

Answer 3

This sector is involved with converting products from the primary sector into finished or semi finished goods.
Example: 
-Textile production
-Engineering
-Food processing
-Metal working

Question 4

What happens in the tertiary sector?

Answer 4

It is involved with providing services. Example:

• Commercial services
• Financial services
• Household services
• Leisure services

Question 5

What is interdependence?

Answer 5

The three sectors rely on each other to function properly, this reliance is called interdependence.

Question 6

Why has manufacturing declined in developed countries?

Answer 6

• People prefer to spend their income on service rather than tangible goods.
• There is fierce competition in the production of manufactured goods from countries like Brazil and China.
• Advances in technology.